Questionnaire T Years i Analysis of Questionnaire Result Quality

33

CHAPTER IV RESULTS

4.1 Questionnaire

The previous chapter discusses the methodology implemented to conduct this research project. This chapter will analyze the results of the first questionnaire dealing with the knowledge of TQM within the contractors in Semarang. 4.2 The Respondents Profile 4.2.1 Response Rate The questionnaires were sent to 6 companies in Semarang. Each company was given 5 questionnaires, hence a total 30 responses was expected. However, two questionnaires were not returned, thus this research analyzes the data from 28 returned questionnaires. The table below shows the response rate in data collection for this research. Table 4.1 Data collection response rate Companies Number of questionnaire sent Number of questionnaire returned Response rate Waskita Karya 5 4 80 Pembangunan Perumahan 5 5 100 Wijaya Kusuma 5 5 100 Wijaya Karya 5 4 80 Hutama Karya 5 5 100 Adhi Karya 5 5 100 Total 30 28 93

4.2.2 The Positions of Respondents in Their Companies

This information is related with the number of respondents for each position in the company. Waskita Karya had two engineering manager and three engineering staff as respondents in this study. In Wijaya Karya the respondents were two healthsafety environment manager, one HSE engineer and one commercial manager. The respondents In W The elect respo and q mana their super 11 was q 4.2.3 work expe expe Wijaya Kusu five respon trical, quali ondents wer quality surv agers and tw As can b respective rvisors, adm and qual quality cont 3 Responde For the y king experie rience in t rience of m 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 uma were on ndents in Ad ity survey, re engineeri vey respecti wo project m be seen from companies ministration lity survey trol only 4 Figure 4.1 ent’s Years years of exp ence in proj this field, more than ten 36 ne project m dhi Karya h quality co ing staff, si ively. Finall managers. m the figur . The positi n staff and o 8. The responden The positio of Experie perience, mo ects 55 while the n years at 8 14 34 manager, one held the pos ontrol and ite manager ly for Hutam re below, th ion with the others with position w nts occupyin ons of respo ence in Proj ost of the re . 37 respo smallest g level onl 14 e site mana ition as eng other. In P r, supervisor ma Karya t he responde e largest res 14 respec ith the few ng this posi ondents in th jects espondents h ondents had group in th y. 14 ger and thre gineering m Pembangun r intendent, the respond ents held di spondents w ctively, fol west respond ition. heir compan had only les d between fi his categor 8 ee civil sup manager, me nan Peruma , electrical m dents were th ifferent pos was manage llowed by en dents in thi nies ss than five ive and ten ry was tho 4 ervisors. echanical ahan the manager hree site itions in r 36, ngineers s survey years of years of ose with

4.3 T

this r years Perum Wija ears The Years i Figure 4 research hav As can b s in operati mahan, wit aya Kusuma 10 20 30 40 50 60 Pem Per y ears Figure 4 in Operatio 4.3 below sh ve been ope Figure be seen in f ion. The co th 54 years a, with 36 ye 5 ‐10 years 37 54 bangunan rumahan Wa .2 Respond on of the Si hows the n erating.

4.3 Years i

figure 4.3 a ontractor wi s of experie ears of oper s 10 50 askita Karya H 35 dents years o ix Contract number of y in operation all contracto ith the long ence, while rational reco years 8 50 Hutama Karya of experienc tors years that th n of the six c ors surveyed gest record e the contra ord in its or 50 a Adhi Karya ce in project he six contr contractors d in this stu of operatio actor with rganization. 5 years 55 49 a Wijaya Ka ts ractors pres udy have ha on is Pemb least exper 36 rya Wijay Kusum sented in ad many angunan rience is ya ma 36

4.4 Analysis of Questionnaire Result

The following tables are the results gathered from the questionnaire on the adoption and implementation of TQM by the contractors. The questionnaire consists of 34 questions and is divided in six sections as follows: • Knowledge of TQM • Perception of quality • Data acquisition method • Quality in organization • Training • Others In most of cases the numbers used in these tables represent the number of contractors who gave response to the questions, while in other cases they represent the average and percentage.

4.5 Contractors Knowledge of TQM

In this section, five questions were asked to evaluate the knowledge of the contractors about TQM. The results are as follows:

4.5.1 Definition of Quality

The respondents were asked about the most important measure best used to define quality in their organization. The general results representing the respective companies are shown in the table below. Table 4.2 Definition of quality for the respective contractors Companies Measure to define quality Waskita Karya Team work Pembangunan Perumahan Team work Wijaya Kusuma Customer satisfaction Wijaya Karya Expenses Hutama Karya Customer satisfaction Adhi Karya Customer satisfaction 37 The results in general show that three contractors put customer satisfaction as the best measure to define quality; two contractors chose team work, while one company thought expenses as the most important measure. It can be drawn from these results that most contractors consider customer’s satisfaction as the best measure to define quality. Any company needs to fulfill costumers’s needs by providing the best services and products for them. In the construction industry giving the best service for the customers means providing good facilities that is satisfactory to the customers since they are the final users of the facility built by the contractor. If customers are satisfied with the services provided, they are more likely to give recommendations to other people to use the service of the contractor. They are more likely also to use the same contractor again in the future. Thus the company should look for enough information that can be used in their decision making and change the business conducts in order to satisfy each of their customers. Also, by focusing on customer satisfaction the contractors can get a good feedback and further evaluation to ensure that they are providing the quality of service that their customers expect them to provide.

4.5.2 How TQM Works in the Organization

The questionnaire asks respondents to choose from four criteria on how TQM works in their respective organization. The general results representing the respective companies are shown in the table below. Table 4.3 How TQM work in the organization for the respective contractors Companies How TQM work in the organization Waskita Karya To some extent. Pembangunan Perumahan Very well Wijaya Kusuma Very well Wijaya Karya To some extent. Hutama Karya To some extent. Adhi Karya Very well The results in general show that three contractors said that TQM works very well in their organization, while the other three contractors said that TQM works only to some 38 extent. All companies in this survey thought positively on how TQM works in their respective organization. They see that TQM implementation provide benefits in acheiving objectives, helping on promoting teamwork, competing and improving the communication throughout the organization. The companies saying that TQM works very well in their organization see that TQM implementation has given these companies a lot of profits and lead to good productivity that help the staff improve quality. Other companies, however, think that TQM only works to some extent. In their case TQM works only in some particular area i.e., in improving the processes the system that create products or services to a point that they are error free and yield minimal scrap or waste of resources; or in putting quality control and quality assurance back in the line by empowering front line managers and workers, as it would really help the contructor for the project and increase the productivity of the company.

4.5.3 Benefit of TQM Progam

Respondents were asked whether TQM program brings benefit to their respective organizations. The general results representing the respective companies are shown in the table below. Table 4.4 Benefit of TQM program for the respective contractors Companies Does TQM benefit organization? Waskita Karya Yes, because it improves customers satisfaction Pembangunan Perumahon Yes, because TQM assures quality and product result. Wijay Kusuma TQM program is beneficial to organization Wijay Karya TQM program is beneficial organization Hutama Karya Yes, because it can make employees more productive. Adhi Karya Yes, TQM program is beneficial in organization The results in general show that all contractors in this research agree that TQM is beneficial to their respective organizations. The majority mentions that TQM helps them well organize the projects they have. In other case, TQM helps in making great program for customer’s satisfaction. TQM also makes any work easy and improve communication between workers. TQM enables these contractors improve their quality in their projects. 39 Other benefits include the improvement in employee’s job satisfation and productivity as well as the increase in profits

4.5.4 Area in which TQM is Used to Improve

Respondents were asked to choose the area in their operation which can be improved using TQM. The following figure highlights the level of response from individual respondents taken part in this research, irrespective of their companies, in relation with the area in which TQM is used in their companies. Figure 4.4 Areas in which TQM program is used in the construction industry in Semarang. The results obtained from respondents show that most of them 50 said that TQM program is used to improve good planning in their companies. 35.7 said to increase market share, 7.1 to reduce claims and only 3.6 respondents said that the TQM program is used to reduce lawsuits and change order respectively.

4.5.5 Awareness of Industry Program to Implement the TQM or the ISO 9000 Standard

Respondents were asked whether they are aware of the TQM program implementation or the ISO 9000 standard in their companies. The general results representing the respective companies are shown in the table below. 50 35.70 7.10 3.60 3.60 10 20 30 40 50 60 Good planning Increase market Reduce clims Reduce change order Reduce lawsuits 40 Table 4.5 Awareness of TQM or ISO 9000 implementation for the respective contractors Companies Awareness of TQM or ISO 9000 implementation Waskita Karya The staffs are aware of TQM or ISO 9000. As the industry becomes more competitive, quality is very important for any company. Pembangunan Perumahan Most respondents are aware of TQM and ISO 9000 program as the company itself has got certification. Wijaya Kusuma All respondents are aware of TQM and ISO 9000 program. The company is also certified with ISO 2001 Wijaya Karya All respondents are aware of TQM and ISO 9000 program used to improve quality. Hutama Karya Most respondents are aware of TQM and ISO 9000 program. Adhi Karya Most respondents are aware of TQM and ISO 9000 program. The results in general show that the big majority of respondents working in the contractors in this research are aware of the program in their industry to implement TQM and the ISO 9000. One contractor even have gone a step further with ISO 2001 certification. This results show that all companies agree that if they satisfy their customers, the profits will increase in long run. The contractors have a view that TQM will improve costs and estimating and warranty clients. They understand the potential benefits in implementing TQM or ISO 9000. As the construction industry has become more and more competitive and customers are hard to get, the quality is very important for any company. Most contractors also think that both TQM and ISO 9000 are neccessary to use in their respective organizations because they put the standard for these organization to become world class. ISO standard is seen as superior between the two as it offers a set of guidliness for quality management, whereas TQM is mostly used to continue improvement processes, identifying the causes of quality problems and in elliminating them. With implementation of both TQM and ISO in the organization it is hoped that all quality problems can be solved. 41

4.6 Contractor’s Perception of Quality

In this section, six questions were asked to evaluate the contractors’s perceptions of quality. Results are as follows.

4.6.1 Organization’s Perception of Quality

Respondents were asked to choose one answer about their respective organization’s perception of quality. The general results representing the respective companies are shown in the table below. Table 4.6 Organization’s perception of quality for the respective contractors Companies Organization’s perception of quality Waskita Karya A competitive advantage Pembangunan Perumahan A competitive advantage. The more competitive, the better Wijaya Kusuma A competitive advantage Wijaya Karya A competitive advantage Hutama Karya A competitive advantage. With this advantage in quality the company can get better profit for giving customers the best service and product. Adhi Karya A competitive advantage The results in general show that all contractors view a competitive advantage over the competitors as their respective organization’s perception of quality because of the role of competitive advantage in representing good quality, strenght, resistance and safety. The Total Quality Management TQM philosophy of doing business emphasizes lowering costs by reducing waste, helping suppliers provide quality products and satisfying the customer with quality goods and services. Contractors that can produce goods at lower costs than their competitors, while delivering quality products that satisfy their customers, will have an advantage over those companies that do not duplicate those feats. Implementing TQM can help a company gain a competitive advantage in their business. Implementing TQM can help a company gain a competitive advantage in their business. Competitive advantages can make the company that have them a pioneer and leader in the industry. These in turn will enable the company to an increase in productivity which eventually lead to increasing profits. 42 The following figure highlights the level of response from individual respondents taken part in this research, irrespective of their companies, in relation with the organization’s perception of quality. Figure 4.5 Organization’s perception of quality in the construction industry in Semarang. The figure above shows that the big majority of respondents taking part in this research 82 viewed a competitive advantage as their organization’s perception of quality, while elimination of defects and others had the lowest rate of perception with only 3.6 respondents viewed them as the criterion for quality respectively.

4.6.2 The Rate of Importance for Product and Service Quality

Respondents were asked to rate the importance of productservice quality. The general results representing the respective companies are shown in the table below. Table 4.7 The rate of importance of productservice quality for the respective contractors Companies Quality of productservice’s rate of importance Waskita Karya Important, because the quality of product can get customers trust and make the company more competitive Pembangunan Perumahan Very important because good quality will increase customer satisfaction and make the company get recognition. Wijaya Kusuma The quality of productservice is important 82 10.80 3.60 3.60 10 20 30 40 50 60 70 80 90 A competitive Advantage A tool to increase profit Elimination of Defects Others Com Wija Huta Adhi produ produ they custo provi servi mana unde to en deve taken impo Fig mpanies aya Karya ama Karya i Karya The re uctservice uctservice provide a omers depe ide high qu ice again in agers need erstanding o nhance com lopment pro The fol n part in th ortance for p gure 4.6 The esults in g is ‘very as ‘importa as ‘very im nd on the q uality servic n the future. a set of pr of customers mmunication oject . llowing figu his research productserv e rate of im I Quality of The qualit to improve Very impo product’s The qualit general sho important’, ant’ only. M mportant’ b quality of p ces for its Thus more ractical step s needs and n by focusi ure highligh h, irrespecti vice quality mportance fo Very Impotant 67 43 f productse ty of produ e profits ortant, beca quality ty of produc w that mo , with onl Most contra because the productsser customers, e potential p p-by-step to d requireme ing on the hts the level ive of their y. or productse in Semara rvice’s rate uctservice i ause custom ctservice is ost contrac ly two con actors view ey realize rvices they they will t profits for th ools and m ents, as wel voice of th l of respons r companies ervice quali ang. Important 33 of importan is very imp mer satisfact s very impor ctors say th ntractors ra the quality that the sa deliver. I trust the co he company methods wh ll as proced he custome se from ind s, in relatio ity in the co t nce ortant for c tion depend rtant hat the qu ate the qu y of produc atisfaction If a contrac ompany and y. To ensure hich ensure dures and pr er within a dividual resp on with the onstruction i company ds on the uality of uality of tservice of their ctors can d use its e quality a better rocesses, product pondents e rate of industry 44 Two third 67 of respondents rated the quality of productservice as ‘very important’. The other 33 respondents rated the quality of productservice only as ‘important’.

4.6.3 The Customer Satisfaction’s Rate of importance

Respondents were asked to rate the importance of customer satisfaction for their organization. The general results representing the respective companies are shown in the table below. Table 4.8 The rating of customer satisfaction for the respective contractors Companies Customer satisfaction rating Waskita Karya Very important, because any company research about satisfaction customer through continuous improve product and service for good quality Pembangunan Perumahan Very important, because customer satisfaction is one of the company’s success parameter, as the company become more famous and trusted. Wijaya Kusuma Very important, as it can make the company become pioneer in the market. Wijaya Karya Customer satisfaction is very important for the company Hutama Karya Very important, because the final objective of the company is satisfied customer. Adhi Karya Customer satisfaction is very important for the company The results in general show that all of the contractors in this research rate customer satisfaction as very important. It is because they view that by delivering customer satisfaction the company can be make more successe for product, service and good quality, morever the satisfation from employees is similar to the distrubution products, the final good products is satisfafction customer. 45

4.6.4 Process Improvement Potential Rating

Respondents were asked to rate the improvement potential of nine processes in their company’s operations. The respondents can give from 5 point for the process with very low potential to 1 point for the process with the highest potential for improvement in their respective organizations. The average results for each process irrespective of the companies are shown in the figure below. Figure 4.7 The potential for process improvement in the construction industry in Semarang. The results as shown in the figure above show that according to respondents of this research, the process with the highest rate of improvement potential is the testing procedures at job sites with the average point of 2.0. On the other hand the process with.the lowest potential for improvement in their organization is the administration of change orders process, with the average point of 3.3.

4.6.5 The Operational Variable Ranking in order of Importance

Respondents were asked to rank the five operational variables in their respective organizations according to their importance. The variable with the highest importance gets 10 points, the second one gets 8 points, the third one 6 points, the fourth 4 points and the fifth least important among other variables gets only two points. Results were then added up according to the respective companies. The table below shows the collective ranking of these variables among the contractors surveyed in this research. 2.0 2.3 2.3 2.5 2.5 2.5 2.8 2.8 3.3 1.0 2.0 3.0 4.0 5.0 Testing procedures at job sites On ‐site supervision Personnel management on site office Certification of material On site safety coordination with other members of a … Redesign Close ‐out of projects Administration of change orders 46 Table 4.9 Collective variable ranking in order of importance As can be seen from the table above the contractors think ‘scope’ as the most important variable in their operation. Next in the order of importance are ‘quality’, ‘cost’ and ‘safety’, with ‘time schedule’ ranks at the bottom. These results show the priorities of the contractors in building their projects. Note that the contractors see ‘time schedule’ of the project as the least important variable compared against the other fours.

4.6.6 The Level of Quality Goals Benchmark

Respondents were asked to benchmark the quality goals set by their companies. The general result for the respective contractors is shown below. Table 4.10 Quality goals benchmark for the respective contractors Companies Benchmark Waskita Karya The leading company in the field set the benchmark for the company Pembangunan Perumahan The leading company in the field set the benchmark for the company because it can better the company Wijaya Kusuma The competition in general set the benchmark Wijaya Karya The competition in general set the benchmark Hutama Karya The leading company in the field set the benchmark for the company. Variable Waskita Karya Pembangunan Perumahan Wijaya Kusuma Wijaya Karya Hutama Karya Adhi Karya Total Rank Scope 28 32 22 34 32 48 196 1 Quality 20 28 44 36 34 28 190 2 Cost 30 34 26 20 40 36 186 3 Safety 28 44 34 18 26 24 174 4 Time schedule 10 12 24 12 18 14 90 5 Com Adhi qua qua is su cont doin from and take goa mpanies i Karya The res lity goals to lity goals to uccessful in tractors wa ng so it is h m customer develop the The fol en part in t ls benchma Figure 4 sults in gen o the level o the level o n the busin ant to emul hoped that th s. This is im eir compani llowing figu this research ark.

4.8 Quality

22 The competitio others Benchmar The leadin company neral show of the lead of the comp ness because ate this suc hey can also mportant be ies further i ure highligh h, irrespect goal benchm 7 on in general 47 rk ng compan that the ma ding compan petition in g e it has hig ccess by se o stand out ecause most in the future hts the level tive of their mark in the 7 The lea To level s ny in the fie ajority of th ny in the fi general. The gh quality s etting their among the t of these c e. l of respons r companie constructio 64 ading copany in y set internally eld set the he compani ield, while e leading co standard. Th quality goa competitio ontractors a se from ind es, in relatio on industry your field benchmark ies are setti some only ompany in hus the maj als accordin on and earn are seeking dividual resp on with the in Semaran k for the ing their set their the field jority of ngly. By the trust to grow pondents e quality ng. 48 The figure above shows that most respondents 64 said that their respective companies use ‘the leading company in the field’ as the benchmark for their quality goals. 22 said they use ‘the competition in general’ as benchmark, and only 7 chose either ‘a level set internally’ or ‘others’ as quality goals benchmark respectively.

4.7 The Contractors Data Acquisition Method